Engineering Economy You can use these formulas

5. Calculate the present worth of a machine which costs $74000 initially and will have a $14000 salvage value after 11 years. The operating cost is $10000 at the end of yearl and amounts increasing by 10% each year. Use an interest rate of 14% per year compounded continuously. Basic Time Value Models 1) F = P(1+i)" 2) P= F(1+i)" (1+i)" 3) F = A i 4) A = F (1+i)" - 1 (1+i)" - 1 5) P = A i(1+i)" 6) A= PL ((1+i)" - 1 G (1+i)" 7) F"'= n n G (1+i)" - 1 8) P''= i i(1+1)" (1+i)" n 9) A"=G (1+i)" - 1 (1+ n 1+ E - 1 10) P= D ,i+E E-i 11) Dn P= 1+ E i=E